Reference no: EM132939263

Problem 1: Catherine set up her own bridal company in the year 2003. During December 2003 she bought bridal garments that she used for her own weeding on the same month. These bridal garments were recorded as the company assets. By doing so she has violated which accounting concept?

(a) Objectivity concept

(b) Materiality concept

(c ) Separate Business Entity concept

(d) Accrual concept

Problem 2:  Company need to record expenses and revenues when expenses are incurred and revenue are earned. Which concept described this statement?

(a) Objectivity concept

(b) Materiality concept

(c) Separate Business Entity concept

(d) Accrual concept

Problem 3: On 1st January 2020, ASSB paid via cash RM1,200 for rental expenses. This expenditure will result

in........ (assuming other items remain the same)?

I Assets increased by RM1,200 and Assets decreased by RM1,200

II Liabilities decreased by RM1,200 and Assets decreased by RM1,200

III Equity increased by RM1,200 and Assets decreased by RM1,200

IV Equity decreased by RM1,200 and Assets decreased by RM1,200

Problem 4:  ASSB paid liabilities for RM5,000 will result in (assuming other items remain the same)?

(a) Equity decreased by RM5,000 and Assets decreased by RM5,000

(b) Assets decreased by RM5,000 and Liabilities decreased by RM5,000

(c ) Revenue decreased by RM5,000 and Assets decreased by RM5,000

(d ) Expenses decreased by RM5,000 and Assets decreased by RM5,000

Problem 5:  Received telephone bills from Telekom Malaysia Berhad will be recorded in journals as?

(a) Dr Telephone Charges and Cr Bank

(b) Dr Telephone Charges and Cr Prepaid Telephone Charges

(c) Dr Telephone Charges and Cr TMB

(d) Dr TMB and Cr Telephone Charges